Capitalizing on the Midland acquisition
Midland-Eagle Ford-Bakken producer Earthstone Energy (ticker: ESTE) isn’t slowing down. With 66.1 MMBOE in reported proven reserves and 9,515 BOEPD average production in 2017, Earthstone is moving forward on a growth plan that’s being fueled by five Permian wells in progress as of May.
Earthstone completed a business combination with Bold Energy III LLC in May in which Earthstone acquired 21,000 net acres in the Permian basin—with an 85% operated working interest.
Between its Permian/Midland, Eagle Ford, and Bakken assets, Earthstone Energy Inc. operates on total 50,640 net acres after its combination with Bold.
Source: Earthstone Energy Inc.
Earthstone’s Midland asset totals approximately 27,000 net acres where the company has 172 gross producing wells. In Q1, 2017, the company averaged 6,119 BOEPD out of the Midland assets, which accounted for 64.3% of its total production. Earthstone has reported 715 gross drilling locations on its Midland property.
In its 5,883 non-operated acres in Midland, there are currently three wells producing out of the Wolfcamp—two in Glasscock County, and one in Howard County.
The operated Midland assets retain approximately $70 million in capital budgeting—the majority of the $130 million that Earthstone has allocated to capital expenditures for 2017. The non-operated Midland assets have been allocated another $11 million.
Eagle Ford
Within the Eagle Ford asset, Earthstone holds 17,740 net acres with working interests ranging from 33% to 55%. Driving production in the region are 99 gross, 45.1 net producing wells, with another 170 gross potential drilling locations identified.
Source: Earthstone Energy Inc.
Earthstone also has non-operated interests in the area, with 61 gross producing wells on 2,900 net acres in La Salle County.
Earthstone plans to spend $23 million to drill 11 gross wells in Gonzales County this year.
Bakken/Three Forks
In its Bakken assets, Earthstone has an average of 6% interest in 158 gross wells, across 5,900 net acres. An additional 13 wells are in the process of being drilled or competed. The Bakken/Three Forks area in general holds another 210 potential gross drilling locations.
Earthstone Energy CEO Frank A. Lodzinski said, when announcing his company’s uplisting to the NYSE from the NYSE MKT, “Given our recent strategic accomplishments, we believe the NYSE provides a broader platform and services through which the investor community may appreciate our future growth objectives.”
Earthstone Energy Inc. is presenting at EnerCom’s The Oil & Gas Conference® 22
Earthstone will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
